Don't go around saying the world
owes you a living. The world owes
you nothing. It was here first.
Mark Twain
owes you a living. The world owes
you nothing. It was here first.
Mark Twain
Wednesday, July 8, 2009
FOR YOU NUMBER JUNKIES
Being a numbers person, this caught my attention. On July 8, 2009, at five minutes and six seconds after 4 AM, the time and date will be 04:05:06 07/08/09.
This will never happen again!
Well, that particular sequence won’t, but the six figures in order come into play on November twelfth 2013 when at 9 minutes and ten seconds after 8 a.m., it will be 08:09:10 11/12/13.
Oh, wait! On the ninth of August in 2010, when the time and date will be 05:06:07 08/09/10 it happens again.
And don’t forget when it is 06:07:08 09/10/11 on the tenth of September in 2011 it will also occur.
Well, never mind—it happens every so often. So, big deal. But it’s interesting.
This will never happen again!
Well, that particular sequence won’t, but the six figures in order come into play on November twelfth 2013 when at 9 minutes and ten seconds after 8 a.m., it will be 08:09:10 11/12/13.
Oh, wait! On the ninth of August in 2010, when the time and date will be 05:06:07 08/09/10 it happens again.
And don’t forget when it is 06:07:08 09/10/11 on the tenth of September in 2011 it will also occur.
Well, never mind—it happens every so often. So, big deal. But it’s interesting.
Tuesday, July 7, 2009
TAX STIMULUS QUESTIONS
We are still getting questions on the tax relief that was included in The American Recovery and Reinvestment Act of 2009. If you are still confused, here is a summary.
1. Should my employees complete a new W-4 to change their tax withholdings?
No, employees do not need to complete a new W-4. The Making Work Pay tax credit is automatic. However, individuals with multiple jobs or married couples whose combined incomes place them in a higher tax bracket may elect to submit a revised W-4 to ensure enough is withheld from their paychecks to cover taxes on the combined income.
2. Will my employees owe money to the government at the end of the year because of the tax change?
People who receive more federal tax credit than they are entitled to will be required to pay it back as part of filing next year’s 1040 personal tax return. Individuals who work multiple jobs or married couples who both work may want to increase the amount of their withholding from one or more of their employers by completing a new W-4 form.
3. When does the tax credit end?
The Making Work Pay tax credit is for the 2009 and 2010 tax years. As currently written, it will end with employees’ last paycheck of 2010.
4. How will my employees know if their withholding is correct?
Employees who are unsure whether they are having enough money withheld should refer to IRS Publication 919 at www.irs.gov for guidance on tax withholding.
Let us know if you have any other questions.
Larry Kopsa CPA
1. Should my employees complete a new W-4 to change their tax withholdings?
No, employees do not need to complete a new W-4. The Making Work Pay tax credit is automatic. However, individuals with multiple jobs or married couples whose combined incomes place them in a higher tax bracket may elect to submit a revised W-4 to ensure enough is withheld from their paychecks to cover taxes on the combined income.
2. Will my employees owe money to the government at the end of the year because of the tax change?
People who receive more federal tax credit than they are entitled to will be required to pay it back as part of filing next year’s 1040 personal tax return. Individuals who work multiple jobs or married couples who both work may want to increase the amount of their withholding from one or more of their employers by completing a new W-4 form.
3. When does the tax credit end?
The Making Work Pay tax credit is for the 2009 and 2010 tax years. As currently written, it will end with employees’ last paycheck of 2010.
4. How will my employees know if their withholding is correct?
Employees who are unsure whether they are having enough money withheld should refer to IRS Publication 919 at www.irs.gov for guidance on tax withholding.
Let us know if you have any other questions.
Larry Kopsa CPA
Monday, July 6, 2009
QUESTION ON CLAIMING CHILDREN
Larry, I am supposed to claim one or both of my kids in all of the years-2006 through 2008. The problem is, my wife will not sign the form to release the exemption. Do you have any thoughts on what I should do?
Doug
Doug, unfortunately, you can't claim the kids without the signed Form 8332. If your wife will not sign this form, you will have to take her to court due to a contract violation (the divorce decree). Tax law and contract law are two separate issues. The IRS will not get involved. They say 8332 or no exemption.
If you should claim the children without the 8332 you will receive a notice from the IRS and this could be an audit red flag.
I wish you the best of luck with this situation.
Larry Kopsa CPA
Doug
Doug, unfortunately, you can't claim the kids without the signed Form 8332. If your wife will not sign this form, you will have to take her to court due to a contract violation (the divorce decree). Tax law and contract law are two separate issues. The IRS will not get involved. They say 8332 or no exemption.
If you should claim the children without the 8332 you will receive a notice from the IRS and this could be an audit red flag.
I wish you the best of luck with this situation.
Larry Kopsa CPA
ARE YOU READY FOR SOCIALIZED MEDICINE?
It was an honor for me to be selected by Nebraska Senator Mike Johanns to be part of an eight-member round table health care reform. There were seven other individuals on the panel representing various aspects of the health care industry. I was on the panel to speak for small business.
According to Senator Johanns, if you don’t want socialized medicine, you better be contacting your congressman to register your opposition. You must do this quickly; it appears that the current administration is hell bent on getting this passed by August 8. It seems like they want to run this through without the public knowing the details. It also seems that is the modus operandi of this administration. “Trust me!”
All of us on the panel realized that the health care issue needs to be solved. The problem is that the issue has been around for a long time. Why is it necessary to push legislation through that would essentially put everyone under a Medicare type program?
There are certainly two sides to this issue. In my comments to Senator Johanns I concluded with the statement that, “there is really no right answer...just a lesser wrong answer to the health care problem.”
I will keep you informed.
Larry Kopsa CPA
According to Senator Johanns, if you don’t want socialized medicine, you better be contacting your congressman to register your opposition. You must do this quickly; it appears that the current administration is hell bent on getting this passed by August 8. It seems like they want to run this through without the public knowing the details. It also seems that is the modus operandi of this administration. “Trust me!”
All of us on the panel realized that the health care issue needs to be solved. The problem is that the issue has been around for a long time. Why is it necessary to push legislation through that would essentially put everyone under a Medicare type program?
There are certainly two sides to this issue. In my comments to Senator Johanns I concluded with the statement that, “there is really no right answer...just a lesser wrong answer to the health care problem.”
I will keep you informed.
Larry Kopsa CPA
Friday, July 3, 2009
NON-BUSINESS ENERGY PROPERTY CREDIT
Larry, I recently heard some news of a $1,500 energy credit. I have already used the $500 energy credit on my 2007 taxes. Do I still get the $1,500 credit on my taxes this year, even if I previously used the $500 credit?
Thomas
Thomas, you are referring to the Non-Business Energy Property Credit. Taxpayers do get the $1,500 credit even if they have used the previous $500 credit. Here's some more information that may help you to understand the credit better.
The Credit is available during the 2009 & 2010 tax year.
The Credit is nonrefundable.
The amount allowable of the credit is a lifetime cap of $1,500. This amount can be reached by taking 30% on the following items:
Thomas
Thomas, you are referring to the Non-Business Energy Property Credit. Taxpayers do get the $1,500 credit even if they have used the previous $500 credit. Here's some more information that may help you to understand the credit better.
The Credit is available during the 2009 & 2010 tax year.
The Credit is nonrefundable.
The amount allowable of the credit is a lifetime cap of $1,500. This amount can be reached by taking 30% on the following items:
- Insulation, exterior windows or skylights, exterior doors, and certain metal or asphalt roofing.
- Energy –efficient property including electric heat pump water heaters, electric heat pumps, central air conditioners, natural gas, propane, or oil heaters and biomass fuel stoves.
- Qualified natural gas, propane, or oil furnaces or boilers.
- Advanced main air circulating fans.
The $1,500 can be claimed in 2009 and 2010 even if they have used the $500 credit in 2006 and 2007.
If only a portion of the $500 credit was used, the remainder can not be carried forward.
The items must meet the criteria of the International Energy Conservation Code.
Wednesday, July 1, 2009
JUST WHEN YOU THINK THEY HAVE TAXED EVERYTHING - A PROPOSED TAX ON SODA
(Wall Street Journal) -- The Wall Street Journal reports that "Senate leaders are considering new federal taxes on soda and other sugary drinks to help pay for an overhaul of the nation's health-care system." The paper notes that "the taxes would pay for only a fraction of the cost to expand health-insurance coverage to all Americans and would face strong opposition from the beverage industry. They also could spark a backlash from consumers who would have to pay several cents more for a soft drink."
According to the article, a Washington-based watchdog group "plans to propose a federal excise tax on soda, certain fruit drinks, energy drinks, sports drinks and ready-to-drink teas. ... Excise taxes are levied on goods and manufacturers typically pass them on to consumers."
See the story at <http://online.wsj.com/article/SB124208505896608647.html>
According to the article, a Washington-based watchdog group "plans to propose a federal excise tax on soda, certain fruit drinks, energy drinks, sports drinks and ready-to-drink teas. ... Excise taxes are levied on goods and manufacturers typically pass them on to consumers."
See the story at <http://online.wsj.com/article/SB124208505896608647.html>
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